A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- FDIC InsuranceGovernment-backed protection that covers your deposits up to a set limit per bank if the insured bank fails, keeping your money safe.
- Credit UnionA member-owned, not-for-profit financial cooperative that offers banking services, often with lower fees and better rates than banks.
- Savings AccountA bank account meant for storing money you don't need right away, usually paying a small amount of interest on the balance.
- Checking AccountA bank account built for everyday spending, letting you deposit money and pay for things with a debit card, checks, or transfers.
- Certificate of Deposit (CD)A savings product where you lock money away for a fixed term in exchange for a set interest rate, paying a penalty if you withdraw early.
- Deposit Insurance LimitThe maximum amount of your money that government insurance will cover per depositor, per bank, in each account ownership category.
More in Banking
Account NumberAccount ReconciliationACH TransferAPR (Annual Percentage Rate)APY (Annual Percentage Yield)ATM (Automated Teller Machine)
Plain-English education — not personalized legal, tax, or investment advice.